This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has won $6.7-million in civil sanctions against Christopher Wheeler, the New York stock tout charged with a pump-and-dump scheme that included two Canadian listings. (All figures are in U.S. dollars.) The SEC claimed that Mr. Wheeler promoted the companies on-line while secretly selling millions of shares.

The sanctions, handed down by U.S. District Judge Charles Siragusa on Sept. 27, 2014, are a complete victory for the SEC. The regulator had sought disgorgement of $3.01-million in gains, $681,808 in interest and a $3.01-million fine, for a total of $6.7-million. The judge ordered the substantial penalties despite protests from Mr. Wheeler that the amounts the regulator was seeking were drastic. In a motion filed Dec. 2, 2013, he asked that the judge fine him nothing. He claimed that his violations were more technical than egregious, and said there was no evidence that a single investor lost any money as a result of his actions. Mr. Wheeler also contended that he had fully informed investors he could be selling the stocks he was promoting. He relied on a lengthy disclaimer that he had used which stated that his website, called OTCStockExchange, "intends to sell its shares in the event that the shares rise in value."

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS